The cryptocurrency bulls appear to have wrestled back control of the markets, thanks to bitcoin. With the bitcoin price now perched above USD 47K, the buying has spilled over to the broader cryptocurrency market. Bitcoin’s dominance is hovering at 43.6%, which is high enough to steer the direction of the markets.
The altcoins have taken the cue, and the combined value of the cryptocurrency market is now over USD 2 trillion. The crypto market hasn’t seen the USD 2 trillion level since the spring. Nearly all of the top-10 coins are currently trading in the green, with the exception of stablecoins Tether and USD Coin.
On Twitter, crypto analyst PlanB, who is also behind the bitcoin stock-to-flow valuation model, illustrated that bitcoin’s RSI is nearing the 70+ area on a scale of zero to 100. A reading above 70 could suggest overbought conditions. Bitcoin’s RSI, however, has been known to tread much higher than that, suggesting the upward momentum could persist.
— PlanB (@100trillionUSD) August 16, 2021
In addition, the Bitcoin Fear and Greed Index is hovering at 72 and is currently flashing “greed.”
Bitcoin Fear and Greed Index is 72 – Greed pic.twitter.com/18oS35Bavp
— Bitcoin Fear and Greed Index (@BitcoinFear) August 16, 2021
Bitcoin vs. Dogecoin
A Twitter spat emerged over the weekend between the bitcoin and Dogecoin communities. Billionaires Mark Cuban and Elon Musk defended the meme coin, Dogecoin, sending the price rallying more than 30% in the last 24-hour period. Both Cuban and Musk agree that Doge is the “strongest…as a medium of exchange.”
Not only did Cuban tout Dogecoin, but he also took a swipe at bitcoin, saying that there is “too much concentration of wealth with whales.” He went on to compare the BTC whales to central banks, suggesting that they are pulling the strings with supply and demand. As a result, “BTC will always struggle to be a currency,” according to Cuban.
The weekend marked the 50th anniversary of Richard Nixon taking the U.S. dollar off the gold standard. In doing so, he removed the dollar’s convertibility to the precious metal. Bitcoin investors were quick to mark the occasion, suggesting that since that time, monetary policy has been in shambles and bitcoin is the obvious solution.
HAPPY BIRTHDAY fake US dollar. 50-years ago today, August 15, 1971, Nixon took dollar off the gold standard. US dollar became fake money ripping off workers and savers became losers. 50 years ago today is why I do not save dollars. Smart people save gold, silver, & Bitcoin.
— therealkiyosaki (@theRealKiyosaki) August 15, 2021
Bitcoin and gold have since become rival store-of-value assets, with the flagship cryptocurrency’s returns trouncing those of the precious metal. The gold price has had a rocky year, having lost ground, while the bitcoin price is up by roughly 60%.